It can be appreciated that various methods of auction have been in use for years. Prior to the advent of on-line or Internet auctions, traditional auctions conventionally took the form of a physical gathering of participants assembled together within a specified location; said location being where the goods to be auctioned physically resided. At such traditional auctions, a human auctioneer was the conductor of the auction and the individual responsible for shilling the goods to the auction participants. Incited by the direction of the human auctioneer, bidding was conducted simultaneously, successively and competitively among a group of participants present at the auction site.
As noted above, the presence, participation, and personality of the auctioneer was an essential component that provided the auction its sense of competitiveness and excitement. The auctioneer was responsible for instigating bids from auction participants and increasing the bid amount in succession by cajoling the auction participants, and closing the auction upon a cessation of bidding. Thus, in the traditional auction, the role of the auctioneer was not only essential to the functioning of the auction, but in generating the excitement and enjoyment of the auction participants.
The threat of immediate, rapid-fire, and constant competition from other participants was a key factor in the auction's thrill and in the ability of the auctioneer to drive up the current bid price. Thus, in the traditional form of auction, the threat of immediate, rapid-fire bid input, constant competition, the solicitation and offering of goods by an auctioneer, are essential.
The advent of electronic commerce, the Internet, and its related technologies, dramatically and profoundly changed the nature and the method of the traditional auction. The Internet and its related technologies have liberated the bidder from having to be being physically present at the auction. Likewise, the corollary is that the Internet and its related technologies permit the auction of goods from locations that are geographically remote from the bidders. To state the obvious: the Internet has been instrumental in forging a new electronic marketplace that allows buyers and bidders to unite without regard to the constraints of geographical boundaries.